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Q Values

Microeconomics sixth edition, Pindyck-Perferred format for answer is either Word or Excel.

Chapter 10
Page 379 Problem 8

A firm has two factories, for which costs are given by:

Factory #1 C1(Q1) = 10Q 2
1

Factory #2 C2(Q2) = 20Q 2
2

The firm faces the following demand curve:
P=700-5Q
where Q is total output i.e. Q=Q1 + Q2

B) Calculate the values of Q1, Q2, Q, and P that maximize profit.

Solution Preview

The firm's revenue is TR = P*Q = (700 - 5Q)Q = 700 - 5Q^2
Then the marginal cost is MR = dTR / dQ = 700 - 10Q

The firm will max its profit by producing at a level where the ...

Solution Summary

Calculate Q Values

$2.19